The Daily Telegraph - Saturday - Money
Northern cities that bucked the exodus
House prices across the North and Midlands are soaring, and are forecast to keep rising. Liz Rowlinson reveals the most in-demand areas
The pandemic has helped drive a steep fall in London’s population for the first time in 30 years. Analysts from the Economic Statistics Centre of Excellence suggested that 700,000 people left the capital last year, equal to 8pc of the population – which has led to a dip in demand for homes.
But not everyone is abandoning city life: other British cities are experiencing their highest house price growth for a decade.
According to property website Zoopla, five cities have seen prices rise by more than 5pc in the past year, outperforming the UK average of 4.3pc. They were led by Liverpool at 6.3pc, followed by Manchester at 6pc, then Nottingham, Leeds and Leicester.
Estate agency Savills this week forecast that the North West and Yorkshire and the Humber would have the highest house price growth in Britain over the next five years, with both at more than 28pc. That compares with London’s predicted rate of 12.6pc.
So what is behind the growth in these cities? Lower house price to income ratios leave more capacity for price growth, according to Savills. The quest for more space, the Government’s ambition to level up, and investors’ search for ever- higher yields, all add to the prospects of these cities’ markets.
Using data from PropCast, an analysis firm, we found the areas within these top five cities which had the highest proportion of properties under offer.
LIVERPOOL
With an average property price of £127,200, according to Zoopla, the city is by far the most affordable of the top five. A raft of big infrastructure projects in the pipeline – including the Liverpool2 container port and the new Liverpool Royal Hospital – is attracting buy-to-let investors, according to Dan Pennington of agent Century 21.
“Buyers are using gains made during the pandemic to buy two to threebedroom houses for around £125,000,” he said.
PropCast found that L28, in Stockbridge, to the west of the city, and L32, in Kirkby, to the north west, were most in demand among buyers. Also popular were postcodes to the south, in Allerton, Aigburth and Mossley Hill, which are areas that families seek out for good schools and a sense of community outside the centre.
Mr Pennington added: “Many buyers have been tempted by the stamp duty holiday to upsize.”
The appetite for city- centre living has not been killed off, suggested Matthew Fawl of Alesco Investment Properties, a developer. Its Elevate scheme in the cool Baltic Triangle creative quarter sold out within four days in September. “Interest is from across the UK, with 20pc from the Far East and Middle East,” he said. “Among the buyers that intend to use the property themselves are employees of Amazon and Google who don’t want to live in a terraced house in the suburbs.”
MANCHESTER
Investor activity in Manchester city centre has also returned in 2020, with buyers especially driven by potential yields, said Jamie Adam of Savills. According to Aldermore bank, Manchester is the top city to invest in buyto-let in the UK, due to high tenant demand and yields of 6pc. “We’ve seen investors from Asia, especially Hong Kong,” he added.
According to PropCast, 86pc of the postcodes in Manchester are strong sellers’ markets. The M12 postcode, around the universities, is the most in-demand among buyers. The northern suburb of Blackley (M9) is also popular; here, the average property costs £142,226.
NOTTINGHAM
Nottingham is a compact, wellconnected city, with a population projected to expand by 11.9pc by 2040.
According to PropCast, in NG8, the affluent western suburb of Wollaton, 74pc of properties on the market are under offer or subject to contract. The excellent schools, and deer park and museum of Elizabethan Wollaton Hall are popular with families. Other tradi
tionally popular suburbs are Beeston, Mapperley Park and West Bridgford, the latter benefiting from the expansion of the NET tram network to the west side of the city, said Chris Charlton of Savills.
He added: “The south of the city has been popular for its proximity to Trent Bridge – home to Nottingham Forest FC and Trent Bridge Cricket Club – but the development of the river frontage [of the Trent] has been way behind the curve, compared with other cities.”
It’s not just the suburbs that have been attracting buyers. “We have seen
LEICESTER
PropCast found the “hottest” postcodes in Leicester were LE6 and LE4, areas to the north-west and north of the city centre respectively. This is no surprise to Adam Horton of estate agent Hortons. “Both these areas are close to the motorway networks so are wellpositioned for access to other areas,” he said. “A three- bedroom semi costs around £240,000.”
The large commuter villages of LE6 – Groby, Ratby and Newtown Linford – are close to the M1 and A46, but also the green space of Bradgate Park, within
‘Interest is from across the UK, with a fifth of buyers from Asia and the Middle East’
Charnwood Forest. Over in the north east of the city, next to the river Soar and the Grand Union Canal, are Birstall and Wanlip, another two popular rural suburbs offering easy road access into the city centre.
Graham Friston, of agent Yopa, said: “You’ll pay £250,000 for a threebedroom semi or up to £400,000 for a detached house.
“Leicester has been attracting a cross- section of local and Londonbased buyers.”
While Stoughton and Oadby to the south- east of the city have traditionally been desirable outliers for families looking for space to grow, he tips Kibworth – a few minutes further south on the A6 as the “new Oadby”.
“It’s not far from Leicester Grammar School so attracts families,” he said. Three-bedroom homes start from around £300,000, but you can also find attractive older homes in the area too.
LEEDS
Known as a start-up hub, a magnet for creative industries and (formerly) for its club culture, Leeds is the UK’s fourth biggest economic hub. Currently, its property market is on fire. PropCast found that all but one postcode district in the city was a sellers’ market.
While Horsforth and Headingley in the north west of the city have traditionally been two of the most sought-after places to live, nearby Far Headingley and Meanwood have recently been drawing interest for their affordability and community feel.
Areas in the north and west of the city, across the LS5, LS6, LS7 and LS8 postcodes, are particularly popular with buyers.
James Shorte, who works in recruitment, bought a three- bedroom flat within a listed building on the borders of Far Headingley and West Park last June for £475,000.
“I love being close to the north Leeds Triangle – the areas of Roundhay, Chapel Allerton and Shadwell – with great walks into the countryside and fabulous restaurants,” said Mr Shorte, a 37-year-old first-time buyer.
The area is also very conveniently located, just an eight-minute drive into central Leeds. ”I appreciate the separation of driving home into a more relaxed environment,” he added.